Petronas Dagangan, the marketing and retail arm of Malaysian oil and gas giant Petronas, will exit Vietnam after selling its two local units next year, according to international media reports.
PETRONAS (Vietnam) Co. Ltd and Thang Long LPG Company Ltd would be sold to Totalgaz Vietnam Limited, the subsidiary of France's integrated oil and gas giant Total Group, Nikkei Asian Review reported Monday.
Both the companies, acquired by Petronas Dagangan in 2012, bottle and distribute liquefied petroleum gas for cooking.
The deals, whose financial details have not been disclosed, are expected to be completed by the second quarter of next year, according to the news website.
It quoted Petronas Dagangan as saying the disinvestment is part of its "portfolio rationalization."
Analysts told the website that the sales would help the company consolidate its operations after recent expansion into other Southeast Asian countries and focus on the Malaysian market, which brings in a majority of its revenue.
The contribution from Vietnam must be quite minimal considering that when it comes to retail, LPG has low profitability compared to lubricants and aviation fuel, MIDF Investment Bank analyst Aaron Tan was quoted as saying by the website.
While Petronas Dagangan is planning to exit Vietnam, its parent will continue to do business in the country, including exploration and production, according to the report.